Bitcoin's price fell from $84,500 on March 17 to $81,300 amid pressure from sellers, likely due to the upcoming FOMC meeting on March 18-19. Historically, such meetings prompt traders to de-risk, leading to price volatility. After announcements, Bitcoin prices have historically reacted sharply, often declining after the Fed opts to maintain rates. With a current 99% probability of rates being stable, this could lead to continued downtrend for Bitcoin. Interestingly, despite price drops, Bitcoin open interest remained steady ahead of the FOMC, suggesting less anxiety, possibly indicating traders expect a neutral outcome. Meanwhile, on March 17, spot Bitcoin ETFs experienced $275 million in net inflows, contrasting previous outflows and hinting at shifting investor sentiment. This increase could reflect expectations of a dovish Fed stance or act as hedging against market uncertainties. Post-FOMC, Bitcoin's price movements will be closely observed to understand the implications of current trading behaviors and ETF flows, as traders anticipate significant price changes following the Fed's decision.

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